The Federal Housing Minister says the Government is steadfast in its commitment to halve the rate of homelessness by 2020 - despite the latest figures showing an increase over the past five years.

According to the Australian Bureau of Statistics (ABS), 105,237 people were considered homeless on census night last year, which is up from just under 90,000 people at the 2006 census - a jump of 17 per cent.

When overall population growth is taken into account, the rate of homelessness is estimated to have risen 8 per cent over the five-year period.

In 2008, then-prime minister Kevin Rudd announced a plan to deal with the issue, including a goal of halving overall homelessness during the next decade.

The main reason for the large increase was due to a significant rise in the number of people living in "severely overcrowded" housing - up by 41,390 since the 2006 census.

However, the census data reveals a small decrease in the number of people "sleeping rough" or living in makeshift housing, down to 6,813 people. Within this group, 68 per cent are male and a quarter are Indigenous Australians.

The Northern Territory has recorded a marginal improvement in the rate of homelessness since the 2006 census, but it remains well ahead of the other states. The rate of homelessness in the ACT is the next highest.

Tasmania and South Australia had the lowest rate of homelessness in 2011, although both states recorded an increase since 2006.

Overall, almost two-thirds of homeless people on census night were under the age of 35, partly because of a significant increase in homelessness in the 25 to 34-year-old age group.

Affordable housing

Federal Housing Minister Brendan O'Connor says while the headline increase in the number of homeless people is disappointing, there are some positives within that, including a decrease in the rate of Indigenous homelessness.

He told the ABC radio's PM program he wants state governments to do more to address the over-crowding problem.

"I think more needs to be done to increase the stock. I think the state governments in particular, who have the levers of the supply side of housing, must reform the housing sector to increase stock - particularly of affordable housing," he said.

Key statistics - 2011 census

105,237 homeless people, up from 89,728 in 2006.

49 people are homeless for every 10,000, up 8 per cent from 45 in 2006.

Homelessness is up more than 20 per cent in NSW, Victoria, Tasmania and the ACT.

The largest fall in homelessness was in the Northern Territory, a figure of 8 per cent.

About three quarters of the increase in homelessness was accounted for by people born overseas.

Little change in the total number of homeless Aboriginal and Torres Straight Islanders, up 3 per cent to 26,744.

But Nicole Lawder, from Homelessness Australia, says the latest figures do not bode well for the Government's target.

"There was also an interim goal of 2013 and that was to reduce homelessness by 20 per cent," she said.

"So it looks like that 2013 goal may also be under threat, so it is concerning."

She added while the figures are worrying, there have been some improvements.

"What we can see from those figures is a decrease in rough sleepers and that was one of the key goals of the white paper on homelessness," she said.

"Rough sleepers has gone down from 8 per cent to 6 per cent and that was one of the things that we're very pleased to see, but now the time has come to focus on some of the other bigger groups."

The figures prompted renewed calls from the Greens for extra funding to deal with what it describes as a "housing crisis".

"We need to see a commitment to at least doubling funding for homelessness services and accommodation in the new national affordable housing agreement which is being negotiated this year," Greens housing spokesman Scott Ludlam said in a statement.

"The Federal Government should negotiate with the homelessness sector directly."

The St Vincent de Paul Society's chief executive, John Falzon, says the high rate of overcrowding shows the need for more social housing.

"Housing that is provided either as public or community housing at a very affordable rental rate, so that people who are currently completely shut out of the private rental market are able to enjoy their rights to appropriate and affordable accommodation," he said.

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